Foreign banks are back. Are Singapore banks doing enough?
With HSBC, Maybank, Pictet and Julius Baer's recent strides, Singapore's Big 3 need to ramp up their game
FOR the past decade it has been quite a breeze for Singapore's three banks to expand in the region and cement further their dominant position at home as international banks shrank their Asian operations in order to rebuild their capital following the Global Financial Crisis.
Starting with DBS, and later OCBC Bank and United Overseas Bank, the three expanded their trade finance business and built up transaction banking operations that offer cash management services to multinationals, earning lucrative fee income along the way. For 2017, DBS said cash management income hit S$1.12 billion, 2.5 times the S$453 million in 2013.
So a spate of recent news pointing to a resurgence by foreign banks in Singapore should make our local bankers sit up. Some may also have noticed that not a few of the foreign rivals are being led by recent arrivals - the point being that fresh CEOs are usually energetic and anxious to make their mark.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Hot stock: Singtel down about 3.3% after announcing S$3.1 billion impairment hit
Perpetual in talks with KKR for corporate trust and wealth management unit sale
SK Innovation expects solid Q2 refining margins, battery unit widen losses
BYD shares face earnings test as China’s EV price war heats up
Singapore stocks decline at Monday’s open; STI down 0.3%
RBNZ says insurance may become unaffordable for high-risk homes